My mother was reluctant about me living on rez but I was still going to go live there until something came up at the last moment and we decided on off-campus. I was really disappointed, since I thought the rez experience is all that and more.
However, after having lived off-campus...I can honestly say that it's better than on rez. Residences seem to be noisier, and if you're sharing with someone, full of unannounced visitors that you can't get rid of since they're not yours. If you're looking for a place where you can live and study (rather than studying in a library), then I wouldn't suggest on campus. Though you may be 'guaranteed a spot on rez because of your excellent grades', it still doesn't mean it's a spot which YOU want - it just means you're guaranteed a bed anywhere they can fit it in. So don't bank on a single room.
That (preaching) said and done, I would suggest living alone/away from home rather than commuting. Though it might be more relaxing to be at home, you still won't actually be in the real world until you're fending for yourself and stuff.
My two cents, I might be drastically wrong about a couple points since I've never entered a res building and am basing everything I said on what my friends who live on campus have told me.
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